Slide 1: Earnings Presentation 3Q 2022
EARNINGS PRESENTATION 3Q 2022 November 4, 2022 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements within the meaning of the federal securities laws, including statements relating to (i) our strategy, outlook and growth prospects; (ii) our operational and financial targets and (iii)
Slide 3: Agenda
AGENDA 1 BUSINESS UPDATE 2 FINANCIAL RESULTS 3 EXECUTING THE DIGITAL PLAYBOOK 3
Slide 4: Business Update
Seat tll DIGITALBRIDGE BUSINESS UPD
Slide 5: Executive Summary: The 3 Things That Matter
EXECUTIVE SUMMARY: THE 3 THINGS THAT MATTER Our focus today remains clear - deliver resilient performance through a turbulent macro environment 1. 2. 3. Form Capital Around Deliver Great Outcomes Simplify Our Business Great Companies and for our Investors and Build Strong Strategies Liquidity New Co
Slide 6: Portfolio Performance: Digital Infra Is Resilient
PORTFOLIO PERFORMANCE: DIGITAL INFRA IS RESILIENT CONSERVATIVE Demand for more, better, faster connectivity and our deep domain expertise is PORTFOLIO DEBT the driver of our businesses and our returns, not interest rates. METRICS TOWER DATA CENTER FIBER SMALL PORTFOLIO PORTFOLIO PORTFOLIO CELLS/EDGE
Slide 7: Capital Formation Update
CAPITAL FORMATION UPDATE YTD capital formation of $6.8 billion, including $3.4 ON TRACK CREDIT FUND billion of FEEUM, positions DBRG to meet/exceed TO EXCEED Floating rate product well suited for TARGET rising rate environment. Fundraising 2022 targets and $3.4 billion (following slide) in our expec
Slide 8: Co-Invest: Delivering for Our LPs
CO-INVEST: DELIVERING FOR OUR LPs $5.0B DigitalBridge’s co-invest program is an important component of our Total Closed YTD investment platform $4.2B 2022 YTD COMMITTED CO-INVESTMENT1 $ billions $2.0B Taken by Fund LPs Total Closed DEMONSTRATES STRONG DESIRE TO $1.5B $1.5B Taken by Fund LPs CONTINUE
Slide 9: Continued to Simplify Our Business and Capital Structure
CONTINUED TO SIMPLIFY OUR BUSINESS AND CAPITAL STRUCTURE Simple, highly-scalable roadmap with asset management at the core, a strong liquidity position, and taking advantage of dislocated markets with accretive buybacks of our common and preferred shares CORPORATE STRATEGY STRENGTHEN LIQUIDITY ACCRE
Slide 10: Financial Results
ceatttaull| DIGITALBRIDGE ) FINANCIAL RESULTS
Slide 11: 3Q 2022 Financial Overview
3Q 2022 FINANCIAL OVERVIEW Revenues, earnings and cash flows continue their positive trajectory on a year-over-year basis with Warehouse Investments, Operating Segment acquisitions, and Performance Fees contributing to growth % Change % Change 3Q21 3Q22 TOTAL COMPANY 3Q21 3Q22 from from 3Q21 LTM LTM
Slide 12: 3Q 2022 Segment Earnings – Investment Management
3Q 2022 SEGMENT EARNINGS – INVESTMENT MANAGEMENT During 3Q22, excluding One-Time Fees, DigitalBridge continued to grow IM revenue driven by higher levels of FEEUM with DBRG OP’s share growing faster by now owning 100% of the IM business. % Change % Change 3Q21 3Q22 INVESTMENT MANAGEMENT 3Q21 3Q22 fr
Slide 13: 3Q 2022 Segment Earnings – Operating Segment
3Q 2022 SEGMENT EARNINGS – OPERATING SEGMENT Continued growth from additions of Houston data center at DataBank and CA-22 at Vantage SDC % Change % Change 3Q21 3Q22 OPERATING 3Q21 3Q22 from from 3Q21 LTM LTM 3Q21 LTM Consolidated Revenues $195.0 $225.4 +16% $700.8 $845.5 +21% Consolidated Adjusted E
Slide 14: Stabilized Growth
STABILIZED GROWTH Investment Management and Operating segments continue to grow consistently with ‘lower left to upper right trajectory’ Investment Management Operating Annualized Fee Revenue Annualized FRE $235M Annualized Revenue Annualized EBITDA DBRG SHARE DBRG SHARE EXCLUDES 31.5% MINORITY INTE
Slide 15: Strong Corporate Liquidity
STRONG CORPORATE LIQUIDITY During 3Q, proceeds from the DataBank recap, partial return of warehouse funding, and continued legacy asset sales built significant liquidity for the DBRG balance sheet, Over the next two quarters, DigitalBridge expects to maintain strong liquidity and be well positioned
Slide 16: Continuing to De-Lever the Balance Sheet
CONTINUING TO DE-LEVER THE BALANCE SHEET DigitalBridge continues to make significant progress simplifying the balance sheet, reducing debt and improving corporate leverage metrics. Target corporate leverage over time is 3-5x. $1,746M $(70M) $1,353M $(152M) $1,353M $(171M) Operating Segment & $1,098M
Slide 17: Executing the Digital Playbook
3 EXECUTING THE DIGITAL PLAYBOOK 17
Slide 18: Delivering Great Outcomes for Our Investors
DELIVERING GREAT OUTCOMES FOR OUR INVESTORS Despite rising rates and an inflationary environment, DigitalBridge closed realizations during Q3’22 at ATTRACTIVE VALUATIONS, creating strong proof points for future capital formation while generating $20M net carry for our shareholders1 PARTIAL REALIZATI
Slide 19: Delivering Great Outcomes: DataBank Recapitalization
DELIVERING GREAT OUTCOMES FOR OUR INVESTORS Case Study: DataBank Recapitalization DataBank recapitalization demonstrated our ability deliver great outcomes on multiples fronts, all at the same time, while validating our position as the “partner of choice’ to investors 1 2.0x MOIC 2 REALIZED PROFITS
Slide 20: DBRG Accelerates into Top 10
DBRG ACCELERATES INTO TOP 10 DigitalBridge has established itself as one of the top 10 infrastructure investors globally and is the only sector specialist in the group AMP acquisition takes us to #7 DBRG FEEUM $ billions TOP INFRA GPs 1 $86B Macquarie 2 $77B Brookfield 3 $72B GIP $27B 4 $62B KKR 5 $
Slide 21: 3Q 2022 CEO Checklist
3Q 2022 CEO CHECKLIST FORM CAPITAL AROUND GREAT DELIVER GREAT OUTCOMES SIMPLIFYING OUR BUSINESS AND COMPANIES AND STRATEGIES FOR OUR INVESTORS BUILD STRONG LIQUIDITY $6.8B in total capital formation YTD Successful DataBank recap and first Asset Management Platform realization in DBP1, Wildstone is S
Slide 22: Q&A Session
teat | DIGITALBRIDGE Q&A SESSION
Slide 23: Appendix
5 APPENDIX 23
Slide 24: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands) 3Q22 LTM 3Q22 2Q22 1Q22 4Q21 3Q21 LTM 3Q21 2Q21 1Q21 4Q20 Net income (loss) attributable to common stockholders $ (383,596) $ (63,273) $ (37,321) $ (262,316) $ (20,686) $ (505,605) $ 41,036 $ (141,260) $ (264,806) $ (140,575) Net income (loss) attributable t
Slide 25: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands) 3Q22 LTM 3Q22 2Q22 1Q22 4Q21 3Q21 LTM 3Q21 2Q21 1Q21 4Q20 Digital IM net income (loss) $ 133,111 $ 46,065 $ 67,995 $ (9,143) $ 28,194 $ 65,423 $ 39,272 $ 15,786 $ 7,663 $ 2,702 Adjustments: Interest expense (income) 10,676 2,906 2,771 2,500 2,499 2,248 2,250
Slide 26: Important Note Regarding Non-GAAP Financial Measures
IMPORTANT NOTE REGARDING NON-GAAP FINANCIAL MEASURES This presentation includes certain “non-GAAP” supplemental measures that are not defined by generally accepted accounting principles, or GAAP, including the financial metrics defined below, of which the calculations may from methodologies utilized
Slide 27: catttsatl |
catttsatl | DIGITALBRIDGE